Trump’s Commerce Secretary Howard Lutnick told Fox News the Trump admin was considering separating government spending from GDP reports, in response to questions – first posed here – about whether the spending cuts pushed by Elon Musk’s DOGE could possibly cause an economic downturn: “You know that governments historically have messed with GDP,” Lutnick said on Fox News Channel’s Sunday Morning Futures. “They count government spending as part of GDP. So I’m going to separate those two and make it transparent.”
Lutnick’s remarks echoed Musk’s arguments on X that government spending doesn’t create value for the economy: “A more accurate measure of GDP would exclude government spending,” Musk wrote on X. “Otherwise, you can scale GDP artificially high by spending money on things that don’t make people’s lives better.”
Lutnick’s take was a bit more nuanced but leaned in the same direction saying “if the government buys a tank, that’s GDP. But paying 1,000 people to think about buying a tank is not GDP. That is wasted inefficiency, wasted money. And cutting that, while it shows in GDP, we’re going to get rid of that.”
And then there was Trump himself who during his speech to Congress, issued the most explicit warning yet, saying to expect “a little disturbance” on tariffs, echoing what he said back in February when the president posted (in all caps) on his Truth Social account that “THIS WILL BE THE GOLDEN AGE OF AMERICA! WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!)” adding “WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.”
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The Federal Reserve has failed: it cannot manipulate the direction of the economy with interest rates. The United States is drowning in debt and talk of the dreaded R word (recession) is becoming headline news.
Let’s look at four factors impacting our economy:
- Immigration. Illegal immigrants are not going to their workplace for fear of being arrested. Many (but not enough) are being deported and some are self-deporting. What does this mean to our economy? The construction industry will collapse as illegals are no longer an option for labor. Housing will also be impacted as the housing/rental requirements for illegals is greatly reduced.
- DOGE. Government workfare and Deep State positions are and will continue to be eliminated. While this will reduce the government’s operating costs, the resulting impact on the economy will be unemployment checks, buyout packages and declining housing prices. Office space will be impacted as the Trump administration sells unnecessary office space and terminates leases.
- Construction. Banks will be impacted as houses are abandoned, construction loans will be in default and both commercial and residential mortgages will be underwater.This will ripple through the economy in all sectors. New construction will collapse nationwide.
- Debt Interest. The United States will pay $1 trillion on the debt this year. A reduction of interest on our existing debt that is coming due in the near future from a recession will have a big impact.
The coming recession is inevitable but as most working people already know, it has been here for years. While inflation has been manipulated by the Deep State and media, the average American worker has felt its impact on food, clothing, electricity and housing. Does America want a Recession? The question is really Does America need a Recession?
This is what President Trump is telling us when he says: “WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID.“
Incredibly, some pundits (and corrupt Democrat politicians) are telling us that we should keep spending money for nothing, kickbacks and bribes. That is the price for keeping us out of recession. Actually, that is the price for keeping us under tyranny at the cost of our Liberty.
So Americans have to ask: what price they will pay for Liberty and freedom? Most of the signers of the Declaration of Independence paid the price for our independence: bankruptcy, huge financial losses, prison and even death. They knew the price and paid it forward to us. We can do no less: we must sacrifice and fight to pay it forward once again for our children.
While a recession is a small price to pay, I believe the price will be even higher. The forces arrayed against us will stop at nothing: nuclear world war, planned pandemics and false flags that will kill untold numbers of people. This is a time for penitence and repentance. We have the pathway forward:
Our Revolutionary War was successful because of our reliance on divine Providence. The Lord showed us His favor and our people fought with sacred Honor. They had no doubts that their fortunes were a small price to pay for independence. They knew and accepted that their very lives might be the price for freedom.
With those thoughts in mind, what is the cost of a recession?
David DeGerolamo
